BlackRock is not involved in the restructuring of MAHB – GIP

BlackRock is not involved in the restructuring of MAHB – GIP

Kuala Lumpur: Global Infrastructure Partners (GIP) insists that BlackRock Inc. has never been involved in any transaction regarding the restructuring of its stake in Malaysia Airports Holdings Bhd (MAHB) through the Gateway Development Alliance (GDA).

Head of Transport Division at GIP and GDA Director Phil Iley said, as announced last January, GIP will be taken over by BlackRock, with the transaction expected to be finalized in the third quarter of 2024.

He said BlackRock recognized GIP’s expertise in infrastructure-related investments.

“After this transaction is finalized, the existing management of GIP will retain full control and responsibility for the strategic direction and operations of GIP and the companies under our investment,” he said in a written reply to Bernama.

GIP is a leading infrastructure investor that manages assets worth US$112 billion (RM527.5 billion) on behalf of its investors, which comprise approximately 500 investment institutions worldwide.

On May 15, GDA and its shareholders announced a voluntary pre-condition offer to take over all the shares in MAHB not yet owned by the Consortium at an offer price of RM11 per share, which is equivalent to RM18.4 billion.

The consortium is led by two Malaysian government-linked investment companies: Khazanah Nasional Bhd through its wholly owned subsidiary, UEM Group Bhd and Kumpulan Wang Simpanan Pejara (KWSP).

Iley said GIP has expertise in the investment, management and operation of some of the world’s largest and most complex infrastructure businesses, including several airports.

“GIP is confident in the potential of MAHB and Malaysia and believes that GDA can further develop MAHB through initiatives that improve passenger experience, improve airline connectivity and upgrade airport infrastructure.

“GIP believes this initiative will create lasting economic benefits not only for MAHB and its stakeholders but also for the economy and Malaysians,” he said.
Investment in MAHB

According to Iley, the offer presented by GDA is an opportunity to use existing expertise to bring improvements at MAHB that will benefit all stakeholders, including passengers, airlines, staff and other businesses more broadly related to MAHB airport, from tourism to manufacturing.

“Through our significant investment in MAHB, we and other strategic partners have a very strong incentive to ensure that it achieves the targets we have outlined.

“In addition, although we are only a minority shareholder, we will also play a role as a technical strategic partner in GDA and provide MAHB with as much operational support and assistance as they need.

“We, together with the other consortium partners, are very optimistic and committed to taking MAHB to a higher level,” he said.

Iley also emphasized that GIP always aims to invest in key infrastructure assets around the world that provide essential services and support economic growth.

“MAHB has a bright opportunity to improve their market position and restore their flight network, which has been below optimal levels for the past few years,” he said.

Iley said GIP is a long-term investor and usually invests in certain airports for more than 10 years, and it needs to take long-term investment decisions with their strategic partners to ensure that the airports under MAHB have sufficient capacity for decades to come.

“For us, what is more important is realizing the potential of this airport network rather than carrying out our efforts based on the deadline that has been determined.

“Should this transformation be successfully implemented, we will consider re-listing MAHB in the Malaysian stock market in the future,” he said.

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